Federal TEACH Grant Conversion Example

Example of Conversion to loan:

You received $16,000 in TEACH Grant funds between September 2013 and June 2017. If your TEACH Grant funds are converted to a Direct Unsubsidized Loan in December 2021 because you did not fulfill your teaching obligation, then approximately $9,347 in interest would have accrued before the Direct Unsubsidized Loan enters repayment (following the six-month grace period) in June 2022. This example is based on an interest rate of 8.25% (the maximum interest rate for Direct Unsubsidized Loans made to undergraduate students). (Note: All amounts are estimates; your actual monthly and total repayment amounts may differ from the amounts shown in the chart.)